Economies of Scale Exist If Average Costs Are Lower at Higher

question 183

True/False

Economies of scale exist if average costs are lower at higher levels of production.

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Definitions:

Obligation

A duty or commitment one party has to perform or refrain from performing specified actions as per a contract or legal requirement.

Novation

The act of replacing an existing obligation with a new one, transferring rights and duties from the original party to a new party.

Substitute

A replacement or alternative for someone or something.

Contract

A binding contract between multiple parties that is supported by legal enforcement.